I uninstalled IE7 Beta 2, rebooted my system and then installed RC1. I then rebooted and after logging in was prompted by a warning message saying ieplore.exe could not run do to normaliz.dll not being found on my system and Windows failed to boot any further.
I was now dreading what I had done until a quick Google search (lucky I have multiple PC's) showed this isn't an isolated problem and numerous other users have encountered the same issue.
Lucky the fix isn't that hard - since you can access task manager after this error occurs you can run cmd.exe, locate normaliz.dll (or download a copy) and copy it to c:\windows\system32 and reboot.
A few more details are in the links below
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Comment by freitasm, on 26-Aug-2006 17:53
Interesting... Any specifics about this problem? My install was basically problem free, but I let IE7 RC1 do its magic - uninstall/reboot/install/reboot all by itself. I did not uninstall IE7 Beta 2 before the installation started.
Comment by johnr, on 26-Aug-2006 19:17
No issues with my install faultless
Comment by juha, on 26-Aug-2006 22:03
I was a bit worried when Windows asked me if I wanted to run the installer the second time around - could be wrong, but I don't recall seeing any notification that this would happen, and it's different from the previous IE7 betas, which required manual uninstallation.
Didn't try it, but was wondering what would happen if you made the wrong choice, ie. didn't run the IE7 installer the second time...
Comment by lapimate, on 26-Aug-2006 22:36
From the Release Notes:
"Updating or Reinstalling Internet Explorer 7 RC1
If a previous version of Internet Explorer 7 is already installed, installing the latest version of Internet Explorer 7 will automatically remove the previous version. After the previous version is removed, Setup will automatically restart your computer and then begin installing the new version [my emphasis]."